DiabloWags said:
Supply?
Please tell me where all of this cheap crude oil production is supposed to come from in California?
What fields in CA are cost effective to tap into by major oil companies?
If you guessed the Monterey Shale, you'd be wrong.
Meanwhile, Alaska peaked at 2.0 mbpd and is now roughly 450,000 bpd.
Just the Facts.
Crude oil "production" - refining - happened at both Valero and Los Angeles (two sites). Three sites total.
Both Valero and Phillips66 refined oil from a mixture of sources international and domestic, including Alaska. They're especially critical given that our state has all of these boutique gasoline blends that not everyone can supply, which will therefore increase reduce supply options, increase complexity, and prices to consumers.
Both refineries produced our specialized, cleaner-burning gasoline, specifically California Reformulated Blendstock Gasoline for Oxygenate Blending (CARBOB) and Conventional Blendstock for Oxygenate Blending (CBOB).
Valero Benicia was also a major producer of asphalt, and expect price increases there as well and shorter price guarantees for contractors.
Paint products will also likely rise, as will jet fuel and diesel.
Given our number of refineries continue to decrease (by Democrat design), we'll be even more susceptible to price spikes when Supply shortages / bottlenecks hit. Oil coming from India or South America is more risky.
Chevron could also close, which would be a massive blow to the 5th largest economy in the world.
We're losing Supply, flexibility, refining capacity, skills, and knowledge, while refineries elsewhere often use subpar processes, spewing more pollution into the environment. And that air doesn't stay in South America or India. Business people like options, flexibility, redundancy, and we lose a lot there.
Democrats have made our Supply Chain even more vulnerable. If we hit $7, $8, $10 a gallon (bottleneck), as some academics have predicted, yes, $4.50 a gallon will look "cheap".
P.S. Chevron corporate already left our state.
